Club Audit Workshop

2021-2022

Traditional Territorial Land Acknowledgment

The SSMU acknowledges that McGill University is situated on the traditional territory of the Haudenosaunee and Anishinaabe nations, a place which has long served as a site of meeting and exchange amongst Indigenous peoples.

The SSMU recognizes and respects these nations as the traditional custodians of the land and water on which it is located.

Table of Contents��What is the Club Audit?

Audit Form

Evaluating the Audit�Contacts�Audit quiz

What is the Club Audit?

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Who?

When?

Where?

Audit Basics

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• All SSMU clubs, including both interim and full-status clubs.
• Sanctioned clubs are required to submit an audit as well!

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• You need to submit your audit every end of the semester. Due dates are following:
• Fall Audit: January 7, 11:59 PM
• Winter Audit: May 7, 11:59 PM

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• SSMU WEBSITE
• Links will also be sent to your SSMU email!
• Clubs and Services Facebook page.

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Late Submissions not accepted.

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• “Club Audit is an evaluation of your club’s finances, including its accuracy, compliance, and completeness”
• Submit audit form including transaction list, documentation, and disclosures

What?

The Audit Form

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Transaction List

Documentation

Disclosures

Audit Basics (what do you need to submit)

1. Submit a fall and winter audit;
2. Attend the training workshop(s);
3. Submit the Student Group information Form;
4. Adhere to the Club constitution;
5. Adhere to all SSMU and McGill policies and governing documents;
6. Inform the SSMU Building Director or Operations Director of all off campus events twenty (20) days prior to event commencement and deposit (if applicable) to determine insurance compliance.

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• Financial records. Includes all transactions occurred, money to be received (receivable) and money to be paid out (payable)

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• References to the transactions. These sources may include full itemized receipts, invoices, credit card statements, etc.

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• Explanation, clarification and all other relevant information.

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Transaction List

You must use the SSMU template transaction list.

Before You Start

1. Download the transaction file from the Audit Form, and rename ‘xxx000’ with your CLU
2. Go to ‘Executive Names’ tab, and type all of your executives’ information
3. Enter your transactions in the ‘Transaction List’ tab

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When you are done, it should automatically calculate who has been reimbursed, the frequency and the amount in the ‘Executive Names’ tab. You can use this to confirm with your executives.

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How to Complete the Transaction List

• Make sure you do not leave any cells in a row blank.
• Ex) All events should have their unique event number, description… , whether it’s a meeting, fundraiser… etc.)
• “Description” should be as detailed as possible.
• “Date” should follow “mm/dd/yyyy” format
• If there are multiple people reimbursed for the same event, list them separately
• If there one person is reimbursed for multiple events, list them separately and conduct individual reimbursements
• Do not modify transaction list format, rows and cells
• Do not include bank fees into the transaction list from RBC bank statement.

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Example of the Transaction List tab

Correct document name

�Example of Executive Names tab

Tips for Completing the Transaction List

• Transaction list will detail your revenues & expenses chronologically
• Every line item on the list must be supported by an approved piece of documentation (full itemized receipts, invoices with attached credit card statements and deposit slips)
• Photos are allowed, but keep in mind you are responsible for the legibility
• However, photos of cheques, cheque copies / stubs do not count!
• Please list any deposits made during year as well

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Documentation

Before You Submit

1. Merge all your supporting documents in 1 PDF. All documents must be scanned clearly.
1. There are many different programs for this. A quick google search of “merge pdf” should be enough. (Note: We do not personally endorse any of them in particular).
2. Label your receipts in your pdf file so they can be matched to your transaction list. Make sure they are in sequence order.
3. Ensure each items are in chronological order and all of them are correctly labelled.

Types of Documentation

Expenses

• All expenses should have a full itemized receipt or invoice
• If the invoice is paid for by an exec, who is then reimbursed, you will need their bank statement as well.
• The bank statement should show their name, last four digits of their account, and the relevant transaction.

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• Payment voucher is not considered as a full receipt.
• All donations must have donation receipts.
• All online orders should have full receipt or invoice with attached credit card statement as a proof of payment.

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Types of Documentation

Revenues

• You should keep and include all deposit slips in your documentation
• For ticket sales, you should keep a spreadsheet of the amount, name, and contact information for each ticket.

Tips for Documentation

• Your reference number should MATCH with what is labeled on your supporting documents file.
• Failure to comply will result in a deduction of compliance points
• Do not mix your personal purchases with club’s purchase
• Clubs are no longer allowed to ‘cross out’ items out of the receipts.
• Keep your club’s expenses separately
• VP Finances should reject reimbursements if there is not adequate or appropriate documentation.
• You should have some documentation for all transactions.

Tips for Documentation

• You shouldn’t have problem uploading the documents in the form.
• If it still says the files are too big, please email vbashkatova@ssmu.ca about this in order for us to investigate your issue
• Documentation should include deposit slips (and proof of event, if available).
• Did the event really happen? Paid to the right person? Etc.
• This is especially true for clubs that are / have been sanctioned in previous terms

Tips for Documentation

• If you do not have enough money in your bank account to reimburse an executive, record the amount as a payable on the day of the audit, and pay them back when you have enough money
• If you are reimbursing an executive in eg. October for a purchase that was made in September, you can record the transaction when it actually was reimbursed (i.e. October).
• If the expenses are made during the Fall audit but reimbursed during the Winter audit, you need to include them in the Winter Audit and vice-versa.

Disclosures

• You must disclose all information that pertains to:
• Related party transactions
• Operating / Accounting errors (losses, uncertainty, or inaccuracy)
• Any other relevant qualitative & quantitative information
• VP Finance of a SSMU club is accountable for providing all such information in full, without errors
• Any event or accounting practices that may be unclear to someone unfamiliar with your club should be disclosed

Evaluating the Audit

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Completeness

Compliance

Accuracy

Audit Basics

1. Submit a fall and winter audit;
2. Attend the training workshop(s);
3. Submit the Student Group information Form;
4. Adhere to the Club constitution;
5. Adhere to all SSMU and McGill policies and governing documents;
6. Inform the SSMU Building Director or Operations Director of all off campus events twenty (20) days prior to event commencement and deposit (if applicable) to determine insurance compliance.

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• Legitimate records
• Transaction List
• Matching documentation
• Auditor requests
• Out of 5 points

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• SSMU & audit rules
• Proper procedures
• Out of 5 points

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• Complete records
• Complete documents
• Complete disclosures
• Out of 5 points

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Each category is scored out of 5 points, a score of less than 3 in any category results in a failing audit grade.

Completeness

Documentation

• All transactions have adequate documentation included full itemized receipts, invoices, deposits slips and bank statements when appropriate.

Transaction List

• All lines and columns are complete on the Audit Sheet. Each line has an event number and name. Nothing is left blank and descriptions are detailed.
• All transactions from the bank statement are included in the transaction list. Fall audit includes May to December transactions. Winter audit includes January to April transactions.

Auditor Requests

• Respond to all auditor requests in a timely and efficient manner.

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Compliance

Audit Rules

• No transactions made in cash
• All executives reimbursed by ACH or Cheque
• Less than 100$ on hand, deposits made in a timely fashion

Event Declarations

• All events that are off-campus, involve alcohol or a contract, must be submitted through the Event Declaration Form.

Compliance

SSMU, Quebec, Club Regulations Violations

Unauthorized Purchase of Drugs or Alcohol

• All alcohol must be purchased and consumed at a licensed bar or restaurant or through the SSMU.

Signing Contracts without Approval of SSMU

• Because clubs are not independent legal entities from SSMU, all contracts must be signed by SSMU signing authorities.

Accuracy

Legitimate and Accurate Records

• All documentation matches the transaction list and is in the correct order
• All transactions from the bank statements must be included in Audit. Fall audit includes May - December transactions. Winter audit includes January - April transactions.
• Starting amount in your bank account and cash box must be aligned with closing amount

Disclosures

• All financial irregularities, sanctions, parties, accounting errors are disclosed

General Rules

• NO cash payment / reimbursement is allowed
• Deposit your cash ASAP after events
• Only reimburse execs when proper receipts are provided
• Cash box should only contain maximum $100
• Do not store any club funds in your personal bank account
• For any online ticket sales, use trustable 3rd party websites like Eventbrite

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Resources

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SSMU VP Finance

Accounting Analyst

Clubs and Services Coordinator

Contacts

1. Submit a fall and winter audit;
2. Attend the training workshop(s);
3. Submit the Student Group information Form;
4. Adhere to the Club constitution;
5. Adhere to all SSMU and McGill policies and governing documents;
6. Inform the SSMU Building Director or Operations Director of all off campus events twenty (20) days prior to event commencement and deposit (if applicable) to determine insurance compliance.

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Eric Sader

finance@ssmu.ca

• Email for
• General Club Finance and banking questions

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Valentina Bashkatova

vbashkatova@ssmu.ca

• Email for
• Audit Submission and Documentation Questions

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Alice Tang

cscoord@ssmu.ca

• Email for
• Audit Questions
• Club Workshops
• Event Declaration and Insurance

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Events Administration eventsadmin@ssmu.ca

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Karla Heisele Cubilla

studentlife@ssmu.ca

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• Email for
• Other general club & student life inquiry

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SSMU VP Student Life

Audit Quiz

It is not mandatory but we highly recommend you to take the Quiz in order to improve and practice your audit knowledge.

Audit Quiz link:

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• https://docs.google.com/forms/d/e/1FAIpQLSdb2SCg_0a2i6Pf4HOsazk6NtDLScYHhGxsUXjSqG0ra47TFw/viewform